US Laws, Codes, Statutes & Cases

Chapter 288 — Public Borrowing and Bonds Generally

 

2005 EDITION

 

 

PUBLIC BORROWING AND BONDS GENERALLY

 

PUBLIC BORROWING AND BONDS

 

FISCAL AGENCY FOR PUBLIC BOND PAYMENTS

 

288.010     Definitions for ORS 288.010 to 288.110

 

288.020     Appointing banking institution as fiscal agency; qualifications; duration

 

288.030     Notice of appointment of agent; bonds and coupons payable at agency

 

288.040     Remitting funds by state and local treasurers to pay bonds and coupons

 

288.050     Notice of receipt of funds

 

288.060     Return of canceled bonds and coupons

 

288.070     Release of treasurers from liability for funds remitted

 

288.090     Postage and express costs

 

288.100     Certain bond issues not affected

 

288.110     Civil liability of treasurers failing to comply with law

 

288.120     Destruction of bonds and coupons upon payment; when destroyed; certification; responsibility of fiscal agency

 

FORMS OF GOVERNMENTAL UNIT BORROWING

 

288.150     Definitions for ORS 288.150 to 288.165

 

288.155     When governmental unit may issue otherwise authorized general obligation bonds and limited tax bonds; priority of security interest

 

288.160     Use of refunding bond proceeds; when governmental unit may issue otherwise authorized refunding bonds

 

288.162     Pledge of full faith and credit and taxing power; insufficiency of lawfully available funds; action to compel payment

 

288.165     Short-term borrowing for current expenses; form of borrowing; procedure; effect of debt limitation

 

PAYMENT OR REISSUANCE OF LOST, MUTILATED OR DESTROYED EVIDENCE OF INDEBTEDNESS

 

288.410     Definitions for ORS 288.410 to 288.460

 

288.420     Payment of matured instrument that has been lost, mutilated or destroyed

 

288.430     Issuance of duplicate for instrument that has been lost, mutilated or destroyed

 

288.435     When requirements of ORS 288.420 and 288.430 may be waived

 

288.440     Form of duplicate instrument

 

288.450     Waiver of requirement of indemnity bond

 

288.460     Petition to circuit court; court order requiring payment of instrument or issuance of duplicate

 

BONDS GENERALLY

 

288.500     Improper expenditure of proceeds of certain exempt bonded indebtedness; remedies; exception

 

288.505     Determining date of issuance of bonded indebtedness

 

288.513     Determining true cash value for bonded indebtedness

 

288.515     Definitions for ORS 288.515 to 288.600

 

288.517     Policy concerning bond covenants

 

288.518     Additional powers of municipality when issuing revenue bonds

 

288.520     Public body to determine interest, principal amount, discount, terms; form of authority to issue; maximum interest rate for state bonds

 

288.523     Appointment of bond counsel; exception of ORS 279A.140

 

288.525     Expenditure of bond proceeds for interest or redemption

 

288.530     Deferral of initial payment of principal on bonds; determination of interest periods

 

288.535     Use of seal

 

288.540     Authorized signatures

 

288.545     Form of bonds

 

288.550     Preliminary official statement not required in certain circumstances

 

288.560     Destruction of bonds and coupons

 

288.570     Appointment of paying agents

 

288.580     County treasurer as paying agent

 

288.590     Registered bond ownership not public record

 

288.592     Refunding bonds; rules

 

288.594     Creation, perfection, priority and enforcement of lien of pledge by public body; UCC not applicable

 

288.596     Variable rate bonds; credit enhancement agreements

 

288.598     Authority to pay rebates and make investments necessary for tax-exempt bond interest

 

288.600     Issuance of bonds with taxable interest authorized

 

REFUNDING BONDS

 

288.605     Definitions for ORS 288.605 to 288.695

 

288.610     Legislative findings; applicability of ORS 288.605 to 288.695

 

288.615     Power to issue advance refunding bonds; allowable purposes

 

288.620     Review and approval by State Treasurer; expenses

 

288.625     Manner of issuance

 

288.630     Oregon Municipal Debt Advisory Commission assistance

 

288.635     Bonds to be refunded; time of redemption

 

288.637     Early redemption; advance refunding; forward current refunding

 

288.640     Redemption of advance refunding bonds

 

288.645     Limit on advance refunding amount

 

288.650     Investment of proceeds; approval by State Treasurer

 

288.655     Tax levies

 

288.660     Trustee; use of proceeds; additional pledges

 

288.665     Advance refunding of revenue bonds; conditions

 

288.670     Refunding of certain general obligation bonds; conditions

 

288.675     Amounts credited to bond retirement not indebtedness

 

288.677     Amount credited to escrow account not indebtedness

 

288.680     Issuance of refunding bonds with other bonds

 

288.685     Rules

 

288.690     Severability

 

288.695     Short title

 

UNIFORM REVENUE BOND ACT

 

288.805     Definitions for ORS 288.805 to 288.945

 

288.815     Procedure for municipality to issue revenue bonds

 

288.825     Pledge of revenues; revenue estimates; excluded revenue

 

288.835     Method of sale; findings

 

288.845     Private negotiated sale of revenue bonds

 

288.855     State authority to issue revenue bonds

 

288.865     Preliminary official statement; content; rules

 

288.875     Public competitive bid sales; notice; bid requirements

 

288.885     Public competitive bid sale by municipality; notice of sale

 

288.895     Competitive bid process by state

 

288.915     Award on competitive bid

 

288.925     Form of revenue bonds

 

288.935     Other authority of municipality

 

288.945     Short title

 

MISCELLANEOUS PROVISIONS

 

288.950     Compliance with debt limit; effect of bond interest on value

 

FISCAL AGENCY FOR PUBLIC BOND PAYMENTS

 

      288.010 Definitions for ORS 288.010 to 288.110. As used in ORS 288.010 to 288.110, unless the context otherwise requires:

      (1) “Fiscal agency” means the bank or trust company designated pursuant to ORS 288.020.

      (2) “Subdivision” means a municipal corporation, quasi-municipal corporation or civil subdivision in this state. [Amended by 1987 c.869 §7]

 

      288.020 Appointing banking institution as fiscal agency; qualifications; duration. (1) The State Treasurer may appoint, as fiscal agency for payment of the bonds issued by this state or by any subdivision, a reputable and responsible bank or trust company. The appointment when so made shall continue for a period of two years unless sooner revoked by the State Treasurer for valid and sufficient reasons. An appointment may be renewed and when renewed shall be for a period not to exceed two years. The State Treasurer may revoke the renewal of an appointment for valid and sufficient reasons. Nothing in this subsection limits the number of times the appointment of a particular bank or trust company as fiscal agency may be renewed.

      (2) Until its successor has been appointed, the bank or trust company named shall act as the fiscal agency of the State of Oregon, in accordance with such terms as shall be agreed upon between the State Treasurer and the agency. The fiscal agency shall act as custodian of such securities owned by the State of Oregon as the State Treasurer shall specify.

      (3) If no such bank or trust company is willing to accept appointment as fiscal agency, or if the State Treasurer considers unsatisfactory the terms under which such a bank or trust company is willing so to act, the bonds and bond interest shall thereupon become payable at the State Treasury or at the office of the treasurer or fiscal officer of the subdivision concerned, as the case may be. [Amended by 1981 c.660 §13; 1987 c.869 §8; 1991 c.352 §4; 2003 c.16 §2]

 

      288.030 Notice of appointment of agent; bonds and coupons payable at agency. The State Treasurer, immediately after the establishment of the fiscal agency, shall publish a notice thereof in some financial paper of general circulation in the city in which the fiscal agency is to act on behalf of the state. Thereafter all bonds and coupons of the state or one of its subdivisions which are by their terms payable in a specified city, shall be paid at the fiscal agency appointed in that city. [Amended by 1987 c.869 §9]

 

      288.040 Remitting funds by state and local treasurers to pay bonds and coupons. Unless otherwise provided by law, the State Treasurer and the treasurer or other fiscal officer of every affected subdivision shall remit to the fiscal agency, before the maturity of any bonds or coupons payable at the fiscal agency, sufficient moneys out of any funds in the hands of any such treasurer or other fiscal officer applicable to such purpose, for the redemption of such bonds or coupons. [Amended by 1967 c.220 §1; 1991 c.352 §5]

 

      288.050 Notice of receipt of funds. Upon the receipt of any funds by the fiscal agency, the agency shall notify the officers from whom the funds were received that the funds have been received.

 

      288.060 Return of canceled bonds and coupons. (1) After payment of the bonds or coupons issued by a subdivision for which the funds were remitted by the treasurer or other fiscal officer of the subdivision, the bonds or coupons shall be canceled and returned to the officer from whom the funds were received, not less often than quarterly by January 15, April 15, July 15 and October 15 of each year. At the option of the treasurer or other fiscal officer, the bonds and coupons may be held for destruction as are state bonds and coupons under ORS 288.120 and may be destroyed in the same manner as state bonds and coupons are destroyed under ORS 288.120.

      (2) After payment of the bonds or coupons issued by this state for which funds were remitted by the State Treasurer, the bonds or coupons shall be canceled and held for destruction under ORS 288.120. [Amended by 1975 c.462 §3; 1981 c.252 §1]

 

      288.070 Release of treasurers from liability for funds remitted. Neither the State Treasurer nor the treasurer or other fiscal officer of any subdivision shall be held responsible for funds remitted to the fiscal agency. The acknowledgment of the receipt of such funds, for which canceled bonds and coupons have not been returned, shall be a voucher to such treasurer in any settlement.

 

      288.080 [Repealed by 1995 c.259 §6]

 

      288.090 Postage and express costs. Postage and express costs shall be proper charges against the state or subdivision therein for which they are incurred and shall be paid to the fiscal agency and in turn be allowed the treasurer or other fiscal officer in settlement.

 

      288.100 Certain bond issues not affected. Nothing in ORS 288.010 to 288.110 shall be construed to affect any bond issues existing on May 20, 1911, or on February 17, 1943, that by their provisions are made payable at a fiscal agency in the City of New York designated before February 17, 1943. However, if desired by the holder, such bond issues and the interest thereon may be paid at the regular fiscal agency appointed in accordance with ORS 288.020.

 

      288.110 Civil liability of treasurers failing to comply with law. If the State Treasurer or the treasurer or other fiscal officer of any subdivision neglects or refuses to perform the duties imposed by ORS 288.010 to 288.110, the State Treasurer or treasurer or other fiscal officer shall be liable to the holder of any bonds or coupons aggrieved by such neglect, in a sum, recoverable in an action at law against such treasurer and the bondsmen of such treasurer, for twice the amount of the face value of any such bonds or coupons as are dishonored on account of the neglect or refusal of such officer to comply with the provisions of ORS 288.010 to 288.110.

 

      288.120 Destruction of bonds and coupons upon payment; when destroyed; certification; responsibility of fiscal agency. (1) When the principal and interest upon bonds issued by this state must be paid only at the office of the State Treasurer, the bonds and interest coupons surrendered to the State Treasurer upon payment shall be retained by the State Treasurer for two years or until audited by the Secretary of State. Thereafter, the State Treasurer, shall destroy them. The State Treasurer shall prepare a list of the bonds and coupons destroyed and shall maintain a certificate signed by the State Treasurer that the bonds and coupons described therein were destroyed by the State Treasurer on the date of the certificate.

      (2) When the principal and interest upon bonds issued by this state must be paid at the office of the fiscal agency or may be paid at either the office of the fiscal agency or the State Treasurer, bonds and interest coupons surrendered upon payment shall be destroyed by the fiscal agency. Bonds and interest coupons that must be destroyed by the fiscal agency under this subsection that are surrendered to the State Treasurer upon payment shall be sent in due course by the State Treasurer to the fiscal agency for destruction.

      (3) The fiscal agency shall destroy paid bonds and interest coupons under subsection (2) of this section not earlier than one year after the date upon which those bonds and coupons are surrendered on payment. For each occasion on which bonds or coupons are destroyed, the fiscal agency shall prepare a destruction certificate for bonds and a separate destruction certificate for coupons. A destruction certificate shall contain a list of the bonds or coupons destroyed, the date of destruction and the signature of an authorized agent of the fiscal agency, and shall be filed with the State Treasurer.

      (4) The fiscal agency is responsible for proper payment and disposition of all bonds and coupons, and for any duplicate payments, payments to unauthorized persons and nonpayment to authorized persons occurring as a result of destruction of bonds or coupons under this section. [1975 c.462 §2]

 

FORMS OF GOVERNMENTAL UNIT BORROWING

 

      288.150 Definitions for ORS 288.150 to 288.165. As used in ORS 288.150 to 288.165:

      (1) “Actual cost” has the meaning given the term under ORS 310.140.

      (2) “Capital construction” has the meaning given the term under ORS 310.140.

      (3) “Costs” when used with capital construction or improvements has the same meaning as “actual costs” as defined under ORS 310.140.

      (4) “Credit agreement” means a note, letter of credit, line of credit or similar agreement in which a financial institution agrees to loan funds to the governmental unit, and the governmental unit pledges its full faith and credit and agrees to repay the amounts loaned over time, with or without interest.

      (5) “Credit enhancement device” means a letter of credit, line of credit, municipal bond insurance policy, standby purchase agreement or other device or facility used to enhance the creditworthiness or marketability of municipal bonds.

      (6) “General obligation bond” means a bond including a credit agreement that:

      (a) Is a full faith and credit obligation; and

      (b) Is payable from taxes that may be levied without limitation by section 11 or 11b, Article XI of the Oregon Constitution.

      (7) “Governmental unit” means a unit of local government within the State of Oregon, including, but not limited to, cities, counties, school districts, special districts, public corporations and intergovernmental corporations organized under the authority of ORS 190.010.

      (8) “Improvement” has the meaning given “capital improvements” under ORS 310.140.

      (9) “Limited tax bond” means a bond or other obligation that:

      (a) Is a full faith and credit obligation; and

      (b) Is payable from taxes that the issuer may levy within the limitations of sections 11 and 11b, Article XI of the Oregon Constitution.

      (10) “Related property” includes tangible personal or real property that is part of, functionally related to or used in connection with a public utility system of which the financed property is a part.

      (11) “Structure” has the meaning given the term under ORS 310.140. [1991 c.902 §98; 1997 c.541 §366; 2005 c.443 §7]

 

      288.155 When governmental unit may issue otherwise authorized general obligation bonds and limited tax bonds; priority of security interest. (1) If authorized by law other than ORS 288.150 to 288.165 and in the manner provided by law, a governmental unit may issue general obligation bonds when:

      (a) The question of issuing the specific bonds has been approved by the electors of the issuing governmental unit or the bonds replace outstanding general obligation bonds pursuant to ORS 288.160; and

      (b) The general obligation bonded indebtedness will be incurred for capital construction or improvements.

      (2) In addition to the authority to issue limited tax bonds provided by other provisions of law, a governmental unit also is authorized to issue limited tax bonds in the following circumstances:

      (a) When a governmental unit is authorized by a statute or charter to issue general obligation bonds without submitting the question of the issuance thereof to its electors, such governmental unit may exercise such statutory or charter authority to issue limited tax bonds for the same purposes and subject to the same terms and conditions of such statutory or charter authority.

      (b) When the electors of a governmental unit have authorized the issuance of general obligation bonds for a particular purpose, the governing body, in its discretion and to carry out such purpose, may issue all or a portion of such bonds as limited tax bonds.

      (3) Notwithstanding this section or any other provision of law requiring bonds to be authorized by ordinance, the limited tax bonds authorized by this section shall be issued pursuant to a resolution or ordinance of the governing body of the issuing governmental unit.

      (4) A governmental unit that has outstanding general obligation or limited tax bonds, subject to applicable covenants or agreements limiting payment of specific obligations to particular sources of funds, shall budget and appropriate amounts sufficient to pay in each succeeding annual period debt service on the bonds. However, this subsection does not require the governmental unit to adopt a supplemental budget to pay the principal and interest coming due on the general obligation or limited tax bonds in the fiscal year in which the bonds are authorized and issued. The governmental unit may pay principal and interest in the fiscal year in which the bonds are authorized and issued from any lawfully available source of funds without adopting a supplemental budget.

      (5) When issuing limited tax bonds, a governmental unit may:

      (a) Establish the maturity schedule, interest rates, including variable or adjustable rates of interest, redemption provisions and other terms of the limited tax bonds. Notwithstanding this subsection, the governing body, in the ordinance or resolution authorizing the issuance of the bonds or notes, may delegate to any elected or appointed official or employee of the governmental unit the authority to determine the maturity dates, principal amounts, redemption provisions, interest rates or the method of determining a variable or adjustable interest rate, denominations and other terms and conditions of the bonds that are not appropriately determined at the time of enactment of the authorizing ordinance or resolution. The authority delegated under this subsection must be exercised subject to the applicable requirements of law and the limitations and criteria set forth in the ordinance or resolution;

      (b) Pledge as additional security for the limited tax bonds all or any portion of its revenues or other funds of whatever kind or nature and from whatever source derived that are not specifically restricted, under applicable law, to uses other than the payment of the amounts owing on the bonds including, but not limited to, taxes, fees or income derived from public utilities or other income-producing enterprises operated by the governmental unit, or agencies or instrumentalities thereof, or fines and penalties, and make and enter into covenants with the owners of the bonds to pay all or any portion of the amounts owing thereon out of all or any portion of the revenues or other funds;

      (c) Grant mortgages, trust deeds or security interests in property that is financed with the limited tax bonds and related property, in order to enhance the security of limited tax bonds or the obligations of the governmental unit under a related credit enhancement device;

      (d) Obtain a credit enhancement device providing additional security for the payment of all or any portion of the amounts owing under the bonds or for the purpose of funding, in lieu of cash, all or any portion of any debt service reserve established with respect to the bonds. The governmental unit may pledge as security for its obligations arising under a credit enhancement device any revenues pledged to the payment of the related bonds, and the obligations are payable from the same sources from which the bonds are payable;

      (e) Enter into agreements with bond trustees and deposit funds with trustees for the benefit of bond owners and the providers of credit enhancement devices for bonds;

      (f) Enter into covenants for the benefit of bond owners or the providers of credit enhancement devices for bonds that are intended to improve the security of bond owners or providers of credit enhancement devices, or to maintain the tax exempt status of interest payable on bonds or credit enhancement agreements. Covenants may include, but are not limited to, covenants regarding the issuance of additional bonds and other financial obligations, the imposition and collection of any revenues that secure the bonds, and the priority of payment of bonds and other financial obligations of the governmental unit; and

      (g) Establish a debt service reserve for the purpose of paying when due all amounts owing on the bonds and fund the debt service reserve with proceeds derived from the issuance and sale of the bonds or from other sources determined by the governing body of the governmental unit.

      (6) A security interest granted by a governmental unit under authority of ORS 288.150 to 288.165 attaches and is perfected on the date the security interest is granted or the date the governmental unit takes possession of the property in which the security interest is granted, whichever is later. A security interest authorized by ORS 288.150 to 288.165 has priority over all other liens and claims. [1991 c.902 §99; 1993 c.97 §5; 2005 c.443 §8]

 

      288.160 Use of refunding bond proceeds; when governmental unit may issue otherwise authorized refunding bonds. (1) Proceeds of refunding bonds authorized by this section shall be used solely to refund bonds and pay related costs and expenses, and shall not be used to pay for costs of operations or costs of projects not attributable to the refunding.

      (2) If authorized by law other than ORS 288.150 to 288.165 and in the manner provided by law, a governmental unit may issue general obligation bonds to refund outstanding bonded indebtedness or to reimburse the governmental unit for costs of capital construction or improvements, if:

      (a) The refunding general obligation bonds have been approved by the electors in a manner that qualifies under section 11 (11)(d)(ii), Article XI of the Oregon Constitution, and the obligations which are refunded, or the first obligations in the series, if the refunding general obligation bonds are part of a series of refundings, or the costs which are to be reimbursed, were incurred for capital construction or improvements; or

      (b) The refunding general obligation bonds replace an issue of outstanding general obligations bonds which were incurred for capital construction or improvements.

      (3) For the purposes of this section, refunding general obligation bonds shall be deemed to replace outstanding general obligation bonds if:

      (a) The refunded general obligation bonds are paid or lawfully deemed paid upon issuance of the refunding general obligation bonds; and

      (b) The net proceeds of the refunding bonds shall be used to pay only the debt service on the refunded bonds and the costs of issuance of the refunding bonds; and

      (c) The bond refunding satisfies at least one of the following tests:

      (A) The principal amount of the refunding general obligation bonds does not exceed the outstanding principal amount of the refunded general obligation bonds, plus the amount of any authorized but unissued general obligation bonds of the governmental unit; or

      (B) The total amount of principal and interest payable on the refunding general obligation bonds does not exceed the total amount of principal and interest payable on the refunded bonds as of the date of issuance of the refunding general obligation bonds; or

      (C) The present value of the debt service on the refunding general obligation bonds does not exceed the present value of the debt service on the refunded general obligation bonds, with the present values calculated at the refunding bond yield.

      (4) For purposes of section 11 (13) and 11b (3)(b), Article XI of the Oregon Constitution:

      (a) If refunding general obligation bonds replace an issue of general obligation bonds, the refunding general obligation bonds shall be deemed to have been issued on the date of issuance of the bonds which are replaced, or the first issue of general obligation bonds, if the refunding general obligation bonds are part of a series of refundings; and

      (b) If the bonds which are replaced were approved by the electors, the refunding general obligation bonds shall be deemed to have been specifically approved by the vote which approved the bonds which are replaced, or the first issue, in a series of refundings.

      (5) Notwithstanding ORS 221.200, 255.085, 287.056 or any other law to the contrary, a ballot measure authorizing issuance of refunding general obligation bonds need not state the principal amount of refunding general obligation bonds, so long as the refunding bonds comply with subsection (3) of this section. A ballot measure may authorize issuance of general obligation bonds to refund a specific series of outstanding general obligation bonds, or may authorize issuance of general obligation bonds to refund all or any portion of the outstanding bonds or future general obligation bonds, or any combination thereof.

      (6) Refunded general obligation bonds shall be deemed paid within the meaning of subsection (3) of this section if:

      (a) The refunded general obligation bonds are deemed paid or defeased under the provisions of the documents authorizing issuance of the refunded general obligation bonds; or

      (b) The governmental unit complies with ORS 288.677.

      (7) If a governmental unit issues general obligation bonds to refund general obligation bonds that were issued before December 5, 1996, the refunded general obligation bonds and the refunding general obligation bonds shall be treated as having been incurred to finance capital construction and improvements under the laws in effect at the time the refunded bonds were issued. The definitions described in section 11 (13), Article XI of the Oregon Constitution, or statutes enacted to interpret section 11 (13), Article XI of the Oregon Constitution, shall not apply to the refunded bonds or the refunding bonds.

      (8) A governmental unit may issue refunding bonds to refund obligations described in section 11 (5)(a)(A) and (B), Article XI of the Oregon Constitution. Ad valorem property taxes may be levied and collected to pay refunding bonds authorized by this subsection to the same extent that ad valorem property taxes could be levied and collected to pay the obligations that are refunded.

      (9) A governmental unit may issue refunding bonds to refund bonds that are not general obligations or obligations described in section 11 (5)(a)(A) and (B), Article XI of the Oregon Constitution, but are secured by ad valorem property taxes. Ad valorem property taxes may be levied and collected to pay refunding bonds authorized by this subsection to the same extent that ad valorem property taxes could be levied and collected to pay the bonds that are refunded. [1991 c.902 §100; 1995 c.333 §29; 1997 c.541 §366a]

 

      288.162 Pledge of full faith and credit and taxing power; insufficiency of lawfully available funds; action to compel payment. (1) As used in this section:

      (a) “Lawfully available funds” means revenues or other moneys of a governmental unit from whatever source derived, including but not limited to moneys credited to the governmental unit’s general fund, revenues from an ad valorem tax authorized to be levied under the governmental unit’s permanent rate limit under sections 11 and 11b, Article XI of the Oregon Constitution, and revenues derived from other taxes levied by the governmental unit in accordance with and subject to limitations and restrictions imposed under applicable law or contract, that are not dedicated, restricted or obligated by law or contract to an inconsistent expenditure or use.

      (b) “Obligation” has the meaning given that term in ORS 288.594.

      (2) When a governmental unit pledges its full faith and credit and taxing powers to the repayment of an obligation, the pledge constitutes an enforceable promise or contract by the governmental unit:

      (a) To pay the obligation out of lawfully available funds of the governmental unit; and

      (b) If lawfully available funds are insufficient to pay when due the amounts owing on the obligation, to levy, impose and collect a tax that is within the authority of the governmental unit to levy, impose and collect in an amount sufficient to pay the amounts owing under the obligation, including past due amounts and penalties.

      (3) If a governmental unit fails to pay when due an amount owing under an obligation secured by a pledge of the full faith and credit and taxing powers of the governmental unit, the owner of the obligation, or a trustee appointed to act on behalf of the owner, may bring an action in the circuit court for the county in which the principal offices of the governmental unit are located to compel the governmental unit to:

      (a) Appropriate and expend sufficient lawfully available funds to pay the amounts owing on the obligation; or

      (b) If lawfully available funds are insufficient to pay when due the amounts owing on the obligation, levy, impose and collect a tax that is within the authority of the governmental unit to levy, impose and collect in an amount sufficient to pay the amounts owing under the obligation, including past due amounts and penalties.

      (4) An owner of the obligation, or a trustee appointed to act on behalf of the owner, may initiate a proceeding to impose remedial sanctions under ORS 33.055 against members of a governing body for failure to comply with an order of the court under this subsection. [2003 c.195 §4]

 

      288.165 Short-term borrowing for current expenses; form of borrowing; procedure; effect of debt limitation. (1) Subject to any applicable limitations imposed by the Constitution or laws of the State of Oregon or the charter, ordinance or resolution of a governmental unit, a governmental unit or the State of Oregon, acting through the State Treasurer pursuant to ORS 293.173, may borrow money by entering into a credit agreement, or issuing notes, warrants, short-term promissory notes, commercial paper or other obligations:

      (a) In anticipation of tax revenues or other income for purposes that include, but are not limited to, the payment of current expenses;

      (b) To provide interim financing for capital assets to be undertaken by the governmental unit; or

      (c) To refund outstanding obligations.

      (2) To secure obligations authorized under this section, a governmental unit or the State Treasurer, acting on behalf of the state, may:

      (a) Pledge the anticipated tax revenues or other income, the proceeds of any bonds or other permanent financing, or any combination thereof;

      (b) Segregate any pledged funds in separate accounts that may be held by the governmental unit, the State Treasurer or third parties;

      (c) Enter into contracts with third parties to obtain standby lines of credit or other financial commitments designated to provide additional security for obligations authorized by this section;

      (d) Establish any reserves deemed necessary for the payment of the obligations; and

      (e) Adopt resolutions and enter into agreements containing covenants and provisions for protection and security of the owners of obligations, which shall constitute enforceable contracts with such owners.

      (3) Obligations authorized by this section that are issued in anticipation of tax revenues or other income, except grant income, and any obligations authorized by this section that are issued to refund them may not be issued prior to the beginning of, and shall mature not later than, the end of the fiscal period in which the governmental unit or the State Treasurer expects to receive the tax revenues or other income. Obligations issued by a governmental unit or the State Treasurer in anticipation of tax revenues or other income, except grant income, may not be issued in an amount greater than 80 percent of the amount budgeted to be received in the fiscal period in which the obligations are issued.

      (4) Obligations authorized by this section that are issued in anticipation of grant income or to provide interim financing for capital assets shall mature not later than five years after the obligations are issued and may be redeemed beginning not later than one year after the governmental unit or the State Treasurer expects to receive the grant or the capital asset is projected to be completed.

      (5) Notwithstanding subsections (3) and (4) of this section:

      (a) A school district, education service district, community college district or community college service district may issue obligations that are issued in anticipation of tax revenues or other income to mature not later than 13 months after the date the obligations were issued.

      (b) A city that is incorporated on or after January 1, 1990, and is within an urban growth boundary may issue an obligation in anticipation of tax revenues or other income prior to the beginning of the fiscal period in which the city expects to receive the revenues or other income if the obligation:

      (A) Matures not later than 18 months after the obligation is issued; and

      (B) Is issued in an amount that does not exceed 80 percent of the amount of lawfully available funds, as defined in ORS 288.162, that the governmental unit reasonably expects to receive.

      (6) Refunding obligations issued pursuant to subsection (1)(c) of this section shall mature not later than five years after the refunding obligations are issued.

      (7) The debt limitations imposed by law or the charter of any governmental unit do not affect the right of any governmental unit to issue obligations under authority of this section, nor are any of the obligations to be taken into consideration in determining the percentage or extent to which the governmental unit is indebted under the debt limitation. Obligations issued to refund outstanding obligations are not considered to be within any of such debt limitations.

      (8) Except as provided in this section, obligations authorized by this section may be in any form and contain any terms, including provisions for redemption at the option of the owner and provisions for the varying of interest rates in accordance with any index, banker’s loan rate or other standard.

      (9) The governing body of an issuing governmental unit, in the ordinance or resolution authorizing the issuance of obligations under this section, may delegate to any elected or appointed official or employee of the governmental unit the authority to determine maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a variable or adjustable interest rate, denominations and other terms and conditions of such obligations that are not appropriately determined at the time of enactment or adoption of the authorizing ordinance or resolution, which delegated authority shall be exercised subject to applicable requirements of law and such limitations and criteria as may be set forth in such ordinance or resolution. Except to the extent of any such delegation, the governmental unit or the State Treasurer shall determine:

      (a) The maximum effective rate of interest the obligations shall bear;

      (b) The manner of sale;

      (c) The discount, if any, the governmental unit may allow;

      (d) The terms and conditions by which the obligations may be redeemed prior to maturity;

      (e) The maturities of the obligations;

      (f) The form and denominations of the notes or other obligations; and

      (g) All other terms and conditions related to the sale of the obligations.

      (10) The governmental unit or the State Treasurer may contract with third parties to serve as issuing, paying and authenticating agents for any obligations authorized by this section.

      (11) Obligations authorized by this section may be sold at public or private sale upon such terms as the governmental unit or the State Treasurer finds advantageous, with such disclosure as the governmental unit or State Treasurer deems appropriate. ORS 287.040 applies to obligations issued by governmental units under this section.

      (12) As used in this section, “fiscal period” means:

      (a) In the case of a governmental unit, a fiscal year.

      (b) In the case of the State of Oregon, a biennium. [1991 c.902 §101; 1993 c.97 §6; 2002 s.s.1 c.1 §1; 2002 s.s.4 c.1 §4; 2003 c.195 §14; 2005 c.6 §1]

 

      288.310 [Formerly 287.702; 1959 c.213 §1; 1979 c.837 §2; repealed by 2005 c.443 §34]

 

      288.320 [Formerly 287.704; 1959 c.213 §2; 1979 c.837 §3; 1987 c.158 §40; repealed by 2005 c.443 §34]

 

PAYMENT OR REISSUANCE OF LOST, MUTILATED OR DESTROYED EVIDENCE OF INDEBTEDNESS

 

      288.410 Definitions for ORS 288.410 to 288.460. As used in ORS 288.410 to 288.460, unless the context requires otherwise:

      (1) “Evidence of indebtedness” includes interest coupons originally attached to bonds issued by an issuer even though detached therefrom subsequent to the date on which such bonds were issued.

      (2) “Duplicate” means a duplicate of an instrument.

      (3) “Governing body” means the person, board, commission, council or other body authorized to direct the issuance of instruments for the issuer.

      (4) “Indemnity bond” means an undertaking conditioned that the asserted owner of an instrument, as principal, will protect the issuer and the paying officer against loss or liability resulting from any demand or payment of the principal of or interest on an instrument and that such asserted owner will surrender such instrument to the paying officer if it comes into the possession of the asserted owner.

      (5) “Instrument” means any lost, mutilated or destroyed evidence of indebtedness of an issuer, other than warrants or checks.

      (6) “Issuer” means the state, county, municipality, district or civil subdivision which has issued an instrument.

      (7) “Lost” means lost or stolen for a length of time and under circumstances that indicate that the instrument has been destroyed or irrevocably lost, that it is not held by any person as the property of the person and that it will not be the basis of a claim against the issuer.

      (8) “Mutilated” means defacement of an instrument to the extent that its negotiation may be impaired.

      (9) “Paying officer” means the public officer, other than a fiscal or paying agent, to whom instruments may be presented for payment. [1959 c.410 §1]

 

      288.420 Payment of matured instrument that has been lost, mutilated or destroyed. (1) The paying officer shall pay the principal of or interest on any instrument at or after maturity when, except as provided in subsections (2) and (3) of this section, the asserted owner of the instrument:

      (a) Submits a satisfactory affidavit describing the instrument and the circumstances surrounding the acquisition of the instrument and giving a detailed statement of the circumstances surrounding its loss, mutilation or destruction;

      (b) Surrenders the instrument, if mutilated and in the possession of the asserted owner; and

      (c)(A) Furnishes an indemnity bond executed by two or more sureties satisfactory to the paying officer and qualifying as in the case of sureties for bail for twice the face amount of the instrument plus interest due thereon; or

      (B) Furnishes an indemnity bond executed by a surety company licensed to do business in the state for the face amount of the instrument plus interest due thereon.

      (2) If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under subsection (1)(a) of this section, the person having the personal knowledge may make the affidavit.

      (3) If the face amount of an instrument plus interest due thereon is $1,000 or more, a surety company licensed to do business in the state must execute the indemnity bond required under subsection (1) of this section. [1959 c.410 §2; 2003 c.14 §143]

 

      288.430 Issuance of duplicate for instrument that has been lost, mutilated or destroyed. (1) If an instrument has not yet matured, the governing body of the issuer shall direct the appropriate officer to execute and deliver a duplicate to the asserted owner of such instrument when, except as provided in subsection (2) of this section, such asserted owner:

      (a) Submits a satisfactory affidavit describing the instrument and the circumstances surrounding acquisition of such instrument and giving a detailed statement of the circumstances surrounding its loss, mutilation or destruction;

      (b) Surrenders the instrument, if mutilated and in the possession of the asserted owner;

      (c) Furnishes an indemnity bond executed by a surety company licensed to do business in the state for the face amount of the instrument plus interest due and to become due thereon; and

      (d) Deposits a sum sufficient to pay the expenses of issuing a duplicate with an appropriate officer of the issuer.

      (2) If the asserted owner does not have personal knowledge of the information that must be contained in the affidavit required under subsection (1)(a) of this section, the person having such personal knowledge may make the affidavit. [1959 c.410 §3; 2005 c.22 §210]

 

      288.435 When requirements of ORS 288.420 and 288.430 may be waived. If the asserted owner of a lost, mutilated or destroyed instrument that was registered provides an affidavit, certification or other reliable proof that the governing body or paying officer reasonably finds protects the issuer from conflicting claims for payment under the registered instrument, the paying officer may waive the requirements of ORS 288.420 and the governing body may waive the requirements of ORS 288.430 with respect to that registered instrument. [1993 c.97 §20]

 

      288.440 Form of duplicate instrument. If any duplicate be issued, it shall be in the same form and amount and bear the same serial number, date of issue and date of maturity as the original instrument. If the instrument be a bond with interest coupons attached, only interest coupons that have not matured under the terms of the original instrument as of the date the duplicate is issued shall be attached to the duplicate. The officer issuing the duplicate shall indorse the word “DUPLICATE” and the date of its issuance upon its face and upon the face of any interest coupon attached thereto. The officer issuing the duplicate shall sign the duplicate on behalf of the issuer. [1959 c.410 §6]

 

      288.450 Waiver of requirement of indemnity bond. The paying officer may waive the requirement of an indemnity bond as imposed by ORS 288.420 and the governing body may waive such requirement as imposed by ORS 288.430 when the asserted owner of the instrument furnishes an undertaking for the face amount of such instrument plus all interest due and to become due thereon to protect the issuer and the paying officer from loss or liability resulting from any demand or payment of the principal of or interest on such instrument and:

      (1) The asserted owner surrenders a mutilated instrument that is so complete that any missing portion thereof could not form the basis of a valid claim against the issuer; or

      (2) The asserted owner of the instrument is the state in its individual or fiduciary capacity or any county, municipality, district or civil subdivision that is not in default on the payment of any of its outstanding obligations. [1959 c.410 §4; 2005 c.22 §211]

 

      288.460 Petition to circuit court; court order requiring payment of instrument or issuance of duplicate. If any paying officer refuses to pay or if any governing body refuses to direct the issuance of a duplicate, the asserted owner of an instrument may petition any circuit court for an order requiring the paying officer or governing body to show cause why the paying officer or governing body should not be required to pay such instrument in accordance with its terms or direct the issuance of a duplicate. If, upon hearing, it appears to the satisfaction of the court that the petitioner is the owner of the instrument, that it has been lost, mutilated or destroyed and that no sufficient cause has been shown why it should not be paid or a duplicate thereof issued, the court shall make an order requiring the paying officer to pay it or requiring the governing body to direct the issuance of a duplicate upon such conditions as the court considers adequate for the protection of the issuer and the paying officer against loss or liability resulting from any demand or payment of the principal of or interest on the instrument. [1959 c.410 §5]

 

BONDS GENERALLY

 

      288.500 Improper expenditure of proceeds of certain exempt bonded indebtedness; remedies; exception. (1) If a court of competent jurisdiction determines that the proceeds of an issue of exempt bonded indebtedness is used for expenditures that are not expenditures for capital construction or capital improvements, the court may require the governmental unit issuing the bonded indebtedness to take only the following actions:

      (a) The court may order the governmental unit to replace the misspent proceeds on a reasonable schedule determined by the court, with interest, from sources other than the taxes that the governmental unit levies to pay the bonded indebtedness, and to use the replaced funds for capital construction or capital improvement expenditures or to pay bond debt service; or

      (b) If the governmental unit fails to comply with an order to replace the misspent proceeds, or acknowledges that the governmental unit is unable to replace the misspent proceeds, the court may determine that a portion of the future levies to pay the bonded indebtedness shall be subject to the limits of section 11b, Article XI of the Oregon Constitution. The portion that is subject to those limits shall be determined by calculating the amount of the taxes that are necessary to pay the principal and interest on the bonded indebtedness that is allocable to the misspent proceeds.

      (2) No action may be filed or maintained against a governmental unit because of an alleged expenditure of proceeds of exempt bonded indebtedness for purposes other than capital construction or improvements, if the misspent amount is less than $5,000. [1997 c.541 §366b]

 

      Note: 288.500 to 288.513 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 288 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      288.505 Determining date of issuance of bonded indebtedness. For purposes of sections 11 and 11b, Article XI of the Oregon Constitution, the date on which bonded indebtedness is issued is the earliest date on which any bond in a series is issued. [1997 c.541 §366c]

 

      Note: See note under 288.500.

 

      288.510 [1969 c.63 §1; 1971 c.366 §1; 1973 c.488 §7; 1975 c.642 §27; 1981 c.23 §2; repealed by 1981 c.94 §1 (288.515 to 288.550 enacted in lieu of 288.510)]

 

      288.513 Determining true cash value for bonded indebtedness. In determining the “true cash value” of taxable property for the purpose of calculating the total amount of indebtedness which may be incurred by the state or local governments under the Oregon Constitution or laws of the State of Oregon, the “real market value,” as defined in section 11b (2)(a), Article XI of the Oregon Constitution, may be used if and to the extent that the “real market value” does not exceed the “true cash value.” [1991 c.902 §1]

 

      Note: See note under 288.500.

 

      288.515 Definitions for ORS 288.515 to 288.600. As used in ORS 288.515 to 288.600:

      (1) “Bonds” means general obligation, revenue or tax increment bonds, notes, lease purchase, financing or loan agreements, land sale contracts or other borrowings of a public body.

      (2) “Public body” means the State of Oregon, its agencies, institutions or any municipality authorized by law to issue bonds.

      (3) “Municipality” means a political subdivision of this state and municipal, quasi-municipal and public corporations and intergovernmental entities organized under ORS chapter 190 authorized by law to issue bonds. [1981 c.94 §2; 1983 c.347 §1; 1991 c.583 §6; 2005 c.443 §9]

 

      288.517 Policy concerning bond covenants. The Legislative Assembly finds and declares that:

      (1) It is a matter of statewide concern that certain covenants made by public bodies regarding any pledge of revenues securing bonds or other obligations not be impaired by subsequent initiative or referendum measures.

      (2) These covenants usually are in the form of a promise to charge and collect rates, fees, tolls, rentals or other charges sufficient to produce revenues to maintain a specified level of debt service coverage.

      (3) Such covenants are material to the security for the bonds or other obligations and to investors’ expectations regarding timely payment of the bonds or other obligations. Any possibility that such covenants might be rolled back, frozen or otherwise subjected to subsequently imposed conditions or restrictions negatively affects the ability of public bodies to market their bonds, to obtain credit enhancement and to obtain satisfactory ratings on their bonds. [1997 c.171 §2]

 

      Note: 288.517 and 288.518 were added to and made a part of 288.515 to 288.600 by legislative action but were not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      288.518 Additional powers of municipality when issuing revenue bonds. Any municipality that is authorized to issue revenue bonds by any law other than the Uniform Revenue Bond Act, ORS 288.805 to 288.945, may, when issuing those bonds, exercise the powers specified in ORS 288.825 (3) and (4). The municipality may also pledge any revenues that such authorizing law allows the municipality to commit to pay the revenue bonds and any amounts held as reserves for the revenue bonds. [1997 c.171 §3]

 

      Note: See note under 288.517.

 

      288.520 Public body to determine interest, principal amount, discount, terms; form of authority to issue; maximum interest rate for state bonds. (1) Except as provided in subsection (5) of this section, a public body issuing bonds shall determine:

      (a) The maximum effective rate of interest, if any, which the bonds shall bear including variable interest rates if the public body so decides;

      (b) The principal amounts, consistent with any limitations established by law, of the bonds or series of bonds to be issued;

      (c) The discount or premium, if any, which the public body will allow;

      (d) The terms by which the bonds may be redeemed prior to maturity, including, but not limited to, the amount of any permitted premium;

      (e) The form of the bonds;

      (f) The term of the bonds;

      (g) The schedule for payment of bond principal and interest;

      (h) The denominations of the bonds; and

      (i) For revenue bonds, tax increment bonds or notes, the type of sale.

      (2) When issuing general obligation bonds, the public body must sell the bonds in conformance with ORS 287.014 to 287.022.

      (3) A municipality may establish a sinking fund for the purpose of repaying principal and interest when due and may covenant to make contributions to that fund.

      (4) Notwithstanding any other provision of law requiring bonds to be authorized by ordinance, a public body may authorize the issuance of bonds by order or resolution of its governing body, and in the ordinance, resolution or other official authorization, a public body may delegate to any elected or appointed official or employee of the public body the authority to determine the maturity dates, principal amounts, redemption provisions, interest rates or the method for determining a variable or adjustable interest rate, denominations and other terms and conditions of the bonds that are not appropriately determined at the time of enactment of the authorizing ordinance or resolution. The delegated authority shall be exercised subject to the applicable requirements of law and any limitations and criteria set forth in the ordinance, resolution or other official authorization.

      (5) When a public body issuing general obligation bonds is the State of Oregon or one of its agencies, the maximum effective rate of interest which the bonds shall bear is 13 percent per annum. However, if an agency is unable to sell the bonds after a reasonable marketing effort, the maximum effective rate of interest may be increased but shall not exceed 14 percent per annum.

      (6) Notice of any redemption authorized under subsection (1)(d) of this section shall be given in the manner directed by the public body, which shall include, if the bonds are not in registered form, publication in at least one issue of a business and financial newspaper published within the City of Portland, Oregon.

      (7) Notwithstanding any other law, a public body is not required to publish a notice of redemption for bonds that are in registered form. [1981 c.94 §3; 1981 c.661 §4; 1981 c.879 §1; 1983 c.347 §2; 1985 c.441 §3; 1993 c.97 §7; 1997 c.171 §13]

 

      288.523 Appointment of bond counsel; exception of ORS 279A.140. (1) Notwithstanding any other provision of law relating to the appointment of bond counsel, a public body may provide for the appointment of bond counsel to advise and assist the public body in the issuance of bonds or certificates of participation, including the issuance of refunding bonds and obligations, and in the lawful administration of outstanding bonds or certificates of participation. The services provided by an appointed bond counsel may include:

      (a) Advising the public body concerning the legality of specific proposed taxable or tax-exempt obligations and the compliance, in substance and procedure, of those obligations with law, including but not limited to federal securities laws and regulations and federal and state tax laws and regulations;

      (b) Issuing legal opinions, including opinions on the authorization, tax status and the binding effect of the obligations and their associated documents and on the lawful use of the proceeds of the obligations, as may be required by the demands of the bond market for the obligations;

      (c) Advising the public body on legal procedures and practices in the bond market for the obligations, including advice on the structuring and marketing of the obligations;

      (d) Preparing or assisting in the preparation of any document related to a specific issue of obligations, including but not limited to a bond authorization, bond resolution, indenture, prospectus, preliminary official statement, official statement, bond sale notice, bond form, bid form or bond purchase agreement;

      (e) Advising the public body concerning the maintenance of the tax status of specific obligations, compliance with any requirements for representations or disclosures relating to the obligations and compliance with any documents issued or executed with respect to the obligations; and

      (f) Advising the public body concerning accounting and investment procedures recommended or required for compliance with tax and federal securities and rebate requirements.

      (2) No appointment of bond counsel under this section shall be construed as authorizing bond counsel to advise or represent the public body on matters that are committed by statute to the Attorney General or by local law to counsel for the public body. An appointment of bond counsel by a state agency or institution shall be subject to the prior approval of the State Treasurer and the Attorney General.

      (3) ORS 279A.140 does not apply to an appointment of bond counsel under this section. [1995 c.247 §2; 2001 c.536 §7; 2003 c.794 §245]

 

      Note: 288.523 was added to and made a part of 288.515 to 288.600 by legislative action but was not added to any smaller series therein. See Preface to Oregon Revised Statutes for further explanation.

 

      288.525 Expenditure of bond proceeds for interest or redemption. (1) A public body may expend bond proceeds for the payment of interest on the bonds for the period established by the public body.

      (2) A public body may expend bond proceeds to purchase or redeem the bonds from which proceeds are derived. [1981 c.94 §4; 1983 c.347 §3]

 

      288.530 Deferral of initial payment of principal on bonds; determination of interest periods. A public body may defer initial payment of principal on bonds for a period of time it reasonably determines, and shall determine whether interest should be paid semiannually or otherwise. [1981 c.94 §5]

 

      288.535 Use of seal. A public body authorized by law to possess a seal shall cause such seal to be imprinted, attached, impressed or otherwise evidenced on any bond of which it is the issuer. However, the failure to imprint, attach, impress or otherwise evidence a seal on any bond shall not affect the validity thereof. [1981 c.94 §6]

 

      288.540 Authorized signatures. Bonds of a public body shall be executed by the signature or signatures of one or more officers as specified by the public body. Signatures of the designated officers may be either manual or facsimile, but at least one signature shall be manual in form. However, all signatures of the public body may be by facsimile if the bonds are to be authenticated by at least one manual signature. [1981 c.94 §7; 1995 c.333 §5]

 

      288.545 Form of bonds. Bonds may be issued in coupon form, with or without privilege of registration, or may be in registered form, or both, with the privilege of converting and reconverting from one form to another, upon such terms and conditions as provided by the public body and applicable provisions of federal law. As evidence of indebtedness, the public body may utilize immobilized or book-entry delivery systems and may use depositories for these purposes. [1981 c.94 §8; 1983 c.129 §1]

 

      288.550 Preliminary official statement not required in certain circumstances. The preliminary official statement required for general obligation bonds by ORS 287.018 shall not be required for any issue for which a commitment to purchase has been received from any state or federal agency unless such state or federal agency requires the preparation of such document. If any other purchaser is awarded the sale of general obligation bonds offered at a sale for which a commitment to purchase such bonds has been received from a state or federal agency, an official statement shall be prepared prior to the delivery of the bonds if such other purchaser so requests. [1981 c.94 §9]

 

      288.560 Destruction of bonds and coupons. At the option of the treasurer or other fiscal officer of a subdivision making use of a paying agent other than the state’s fiscal agency, bonds and coupons may be held for destruction as are state bonds and coupons under ORS 288.120 and may be destroyed in the same manner as state bonds and coupons are destroyed under ORS 288.120. [1981 c.252 §2]

 

      288.570 Appointment of paying agents. (1) In connection with the issuance of bonds, any municipality may appoint one or more paying agents to serve as paying agent on bonds issued after May 26, 1983.

      (2) The paying agents designated under subsection (1) of this section shall either be a financial institution authorized to do business in Oregon or the state’s fiscal agent as provided for in ORS 288.020.

      (3) Any municipality which is required by law to use the county treasurer as paying agent may appoint a paying agent and registrar. The municipality shall provide the county treasurer written notice of such appointment no later than 20 days following the appointment.

      (4) Any municipality appointing a paying agent under the authority of ORS 288.545 and 288.570 to 288.590 may:

      (a) Provide for powers, duties and functions and compensation of such paying agent.

      (b) Limit the liabilities of such paying agent.

      (c) Prescribe a method for resignation, removal, merger or consolidation of such paying agent, appointment of a successor paying agent and transfer of right and properties to such successor paying agent.

      (5) The entity through which bonds are payable shall serve as registrar under such terms and conditions as may be required by rule of the Oregon Municipal Debt Advisory Commission in effect at the time such agreement is executed.

      (6) If the municipality’s paying agent is the state’s fiscal agent, the municipality shall also designate a coregistrar within the State of Oregon. The coregistrar may be either a financial institution authorized to do business in Oregon or a municipality. A municipality may appoint the state’s fiscal agent as paying agent for bonds issued by the municipality. The municipality is not required under this section to appoint the state’s fiscal agent as paying agent for all bonds issued by the municipality.

      (7) Notwithstanding subsection (5) of this section, a municipality may elect to serve as its own paying agent, and in cases where the municipality so elects, it may contract with a financial institution authorized to do business in Oregon or the State of Oregon’s fiscal agent to register bonds at the time of original issuance.

      (8) The authority granted by ORS 288.545 and 288.570 to 288.590 is in addition to any authority to appoint a paying agent or registrar provided by statute or charter amendment. [1983 c.129 §§3,5; 1985 c.441 §4; 1993 c.97 §8]

 

      288.580 County treasurer as paying agent. A county treasurer may enter into agreements with financial institutions to serve as paying agent and registrar, as provided in ORS 288.570 (1) to (8), for any bond issue for which the county treasurer serves as paying agent. A county treasurer may recover costs from the municipality for the service. [1983 c.129 §4; 1985 c.441 §5]

 

      288.590 Registered bond ownership not public record. The records of registered bond ownership, whether maintained by the state or a municipality or its registrar, are not public records within the meaning of ORS 192.410 (4). [1983 c.129 §6]

 

      288.592 Refunding bonds; rules. (1) As used in this section, “forward current refunding” means execution and delivery of a forward delivery bond purchase agreement or similar instrument under which a public body contracts to sell current refunding bonds at a specified future date.